Alphabet and Amazon wind up stellar quarter for big tech

Fri Jul 29, 2016 10:58am EDT
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By Anya George Tharakan and Sweta Singh

(Reuters) - Google parent Alphabet Inc and e-commerce giant Inc capped a blockbuster June quarter for the five biggest U.S. tech companies as their dominance in key markets helped them defy the "law of large numbers".

Apple Inc, Microsoft Corp and Facebook Inc, as well as Alphabet and Amazon, all blew past Wall Street expectations for both profit and revenue.

"The results are further indications that the leaders in their respective spaces are taking market shares and it is very much a microcosm of the internet as a whole," Benchmark Company analyst Daniel Kurnos told Reuters.

At some point, Kurnos said, the fact that the companies have grown so large will catch up with them.

"But I think people still continue to underestimate how large the addressable opportunity is," he said.

Alphabet's Class A shares rose 4.9 percent in early trading on Friday, boosting the company's market value by about $23 billion to $542 billion.

Amazon rose 1.8 percent, pushing up its market capitalization by about $6 billion to around $361 billion.

Together, the five companies would add about $346 billion to their combined value - roughly the gross domestic product of Egypt - if they were to trade at analysts' median price targets.   Continued...

A Google search page is seen through a magnifying glass in this photo illustration taken in Berlin, August 11, 2015.  REUTERS/Pawel Kopczynski/File Photo